Latest TSP (Thrift) Contribution Date?
- chocolate123
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Latest TSP (Thrift) Contribution Date?
Are TSP contributions limited by calendar year, or are they like Roth IRAs where you can contribute up to April of the new year?
In other words, I am starting a new job in July, and am trying to max my TSP's $18,000 limit. I would like to know if I must contribute all $18,000 (3,000 per month) before the end of December 2015, or if I have until some point in 2016 to do so (meaning I wouldn't have to contribute a full $3,000 each month, and give me a lot more breathing room).
Thanks!
In other words, I am starting a new job in July, and am trying to max my TSP's $18,000 limit. I would like to know if I must contribute all $18,000 (3,000 per month) before the end of December 2015, or if I have until some point in 2016 to do so (meaning I wouldn't have to contribute a full $3,000 each month, and give me a lot more breathing room).
Thanks!
Re: Latest TSP (Thrift) Contribution Date?
It is done by calendar year, like a 401k plan.
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Re: Latest TSP (Thrift) Contribution Date?
It's by calendar year, so yes any 2015 contributions would have to be made by the end of December.
Have you contributed to a 401k in the first half of this year though? If so then the total TSP + 401k contributions are limited to $18K.
Have you contributed to a 401k in the first half of this year though? If so then the total TSP + 401k contributions are limited to $18K.
Most of my posts assume no behavioral errors.
Re: Latest TSP (Thrift) Contribution Date?
…or if you contributed to a SIMPLE IRA, that would go into the limit as well.
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- chocolate123
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Re: Latest TSP (Thrift) Contribution Date?
Nope! I have been an unemployed student and have made no contributions whatsoever!
Re: Latest TSP (Thrift) Contribution Date?
Wow, if you can pull this off, you must have gotten hired in as a GS-12!
Even if you can't max it out this year, it's a good way of establishing how little you can take home and survive.
Welcome aboard! I have a daughter who's trying to do the same.
Even if you can't max it out this year, it's a good way of establishing how little you can take home and survive.
Welcome aboard! I have a daughter who's trying to do the same.
The continuous execution of a sound strategy gives you the benefit of the strategy. That's what it's all about. --Rick Ferri
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Re: Latest TSP (Thrift) Contribution Date?
Go for it. Awesome start to your retirement pool. Strive to keep that up in the coming years. Good luck with the new job!!chocolate123 wrote:Are TSP contributions limited by calendar year, or are they like Roth IRAs where you can contribute up to April of the new year?
In other words, I am starting a new job in July, and am trying to max my TSP's $18,000 limit. I would like to know if I must contribute all $18,000 (3,000 per month) before the end of December 2015, or if I have until some point in 2016 to do so (meaning I wouldn't have to contribute a full $3,000 each month, and give me a lot more breathing room).
Thanks!
Re: Latest TSP (Thrift) Contribution Date?
If you are in a low tax bracket for 2015 (because you were employed only half the year), you probably want to use the Roth TSP for your 2015 contributions, even if this means you can't contribute quite as much. If you are in a 15% tax bracket now, it would be better to contribute $15,300 to the Roth TSP than the full $18,000 to the Traditional TSP (with $2700 back in taxes), because you will probably pay at least 15% tax when you withdraw the Traditional TSP. Next year, as a full-year employee, you might be in a higher tax bracket and prefer the Traditional TSP.chocolate123 wrote:In other words, I am starting a new job in July, and am trying to max my TSP's $18,000 limit. I would like to know if I must contribute all $18,000 (3,000 per month) before the end of December 2015, or if I have until some point in 2016 to do so (meaning I wouldn't have to contribute a full $3,000 each month, and give me a lot more breathing room).
- chocolate123
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Re: Latest TSP (Thrift) Contribution Date?
Far from GS-12, I have estimated my net income each month to be approximately $4100 each month. Of this, I hope to save $3700 (I am couchsurfing with friends for free rent during this time) each month: 3,000 for the TSP and 700 for the remaining 4,000 of this year's Roth IRA.bayview wrote:Wow, if you can pull this off, you must have gotten hired in as a GS-12!
Even if you can't max it out this year, it's a good way of establishing how little you can take home and survive.
Welcome aboard! I have a daughter who's trying to do the same.
I like the Roth TSP recommendation. I will plan on doing that over the traditional one.
However, is it true that one can only change the amount of TSP contributions once per year? If so, I am afraid of being too ambitious and then having to eat Ramen each month because my overly-ambitious contribution commitment is unmodifiable once I realize my error.
Re: Latest TSP (Thrift) Contribution Date?
I retired CSRS 12/2012. From Memory, you can change your contributions as often as you like, however,chocolate123 wrote: However, is it true that one can only change the amount of TSP contributions once per year?
I'm pretty sure you're FERS, so the math is a bit different.
As an example, the Gov't will match up to 5% if you take advantage of whatever is required to get that amount.
In the ROTH TSP, I guess it doesn't matter how much you put in, coz there's no Gov't match.
In the case of the Regular TSP Funds, my friends had to space their contributions out over the entire 26 or 27 pay periods to get the match. For example, if you pay in the entire 18K over 18 pay periods, you'll not get the match for the remaining pay periods left in the year.
Personally, I haven't touched my TSP and just moved from 100 C fund in Feb, to 50%/25/25 C/S/I funds.
Word to the wise.... Good Luck and Happy Investing.
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Re: Latest TSP (Thrift) Contribution Date?
Actually, there is a match if an employee contributes to the Roth TSP, except that the match goes into the employee's Traditional TSP account.Jerry55 wrote: As an example, the Gov't will match up to 5% if you take advantage of whatever is required to get that amount.
In the ROTH TSP, I guess it doesn't matter how much you put in, coz there's no Gov't match.
Re: Latest TSP (Thrift) Contribution Date?
Thanks for clearing that up. My obvious question is this then.....OutInThirteen wrote:Actually, there is a match if an employee contributes to the Roth TSP, except that the match goes into the employee's Traditional TSP account.
If one contributes into the ROTH IRA 18K for 18 pay periods, will the Gov't continue to pay into the TSP traditional for the remaining pay 8 or 9 pay periods?
I'm guessing not, but CSRS was simpler.
17.5K + 5.5K = 23K / 26 = $884.61 per pay period. (I know these limits are higher now)
I think my FERS Friends said they HAD to do it in 26/27 PP otherwise, they didn't get the match
Retired CSRS on 12/19/2012 @ age 57 w/39 years |
Good Bye Tension, Hello Pension !!!
Re: Latest TSP (Thrift) Contribution Date?
I believe that there is a 1% gov't contribution whether you contribute or not. The remaining match is on a paycheck by paycheck basis, i.e. if you don't contribute during a pay period, you don't get the match.Jerry55 wrote: If one contributes into the ROTH IRA 18K for 18 pay periods, will the Gov't continue to pay into the TSP traditional for the remaining pay 8 or 9 pay periods?
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Re: Latest TSP (Thrift) Contribution Date?
chocolate123;
You can change your contribution amount anytime you wish with no restrictions (well, you can’t stop contributions the day before your check hits the bank and expect it to go thru; there is a cutoff for it to take effect). So feel free to be aggressive knowing you can pull back if need be. I think that is easier to do than getting used to a paycheck and then trying to increase deductions. And the Roth TSP does sound like the way to go for you.
If you intend to max this year, your first contribution may be a WAG unless there is a person helping you fill out your paperwork that can tell you what pay period you are starting in and what it will take to hit the max. In my job, the first full pay period of July starts 7/12 (it is my understanding that not all agencies follow the same schedule/pay date), so somebody starting on that day would have 11 pay periods left which would equal $1,636 a paycheck (I assume you will be paid biweekly). Might be more than you can handle but you do have a very lofty goal; most, if not all, people just starting out would have trouble maxing a 401k, let alone do it in 6 months.
Once you have all the info, go to the TSP website, under tools, “How Much Can I Contribute?”. This will show you how much to put in and not miss the match. Make sure you do this again before 2016!
https://www.tsp.gov/planningtools/elect ... ions.shtml
Good luck and congrats on the job. Sounds like you are off to a great start.
You can change your contribution amount anytime you wish with no restrictions (well, you can’t stop contributions the day before your check hits the bank and expect it to go thru; there is a cutoff for it to take effect). So feel free to be aggressive knowing you can pull back if need be. I think that is easier to do than getting used to a paycheck and then trying to increase deductions. And the Roth TSP does sound like the way to go for you.
If you intend to max this year, your first contribution may be a WAG unless there is a person helping you fill out your paperwork that can tell you what pay period you are starting in and what it will take to hit the max. In my job, the first full pay period of July starts 7/12 (it is my understanding that not all agencies follow the same schedule/pay date), so somebody starting on that day would have 11 pay periods left which would equal $1,636 a paycheck (I assume you will be paid biweekly). Might be more than you can handle but you do have a very lofty goal; most, if not all, people just starting out would have trouble maxing a 401k, let alone do it in 6 months.
Once you have all the info, go to the TSP website, under tools, “How Much Can I Contribute?”. This will show you how much to put in and not miss the match. Make sure you do this again before 2016!
https://www.tsp.gov/planningtools/elect ... ions.shtml
Good luck and congrats on the job. Sounds like you are off to a great start.
Re: Latest TSP (Thrift) Contribution Date?
I also think your goal is lofty, and that is a good thing. But since you may have limited experience with working full time, you might be in for a shock about your paycheck.
I know you estimated your net income, but did you do that with help from the HR people? If not, realize that a dozen or so things will be coming out of your check before you ever see it (health insurance, retirement, federal tax, state tax, etc. etc. etc.) If your estimated net was done on your own without help from HR, you may be shocked at what you end up with.
It would be wiser to start off with at least a $1k per check buffer (money you think you won't need) and then adjust up after two paychecks. Remember that some things may not start the first check and that a double amount may come out later.
It is good that you are eager to get started on saving for retirement, but don't feel like you are "behind" or that any "catch up" is needed. If you can only save $10k for retirement this year, that $8k difference is a drop in the bucket in the long run. Better to have extra money (you can build your emergency fund) while starting out than to need money and not have it.
And realize that couch surfing has its limits. You will eventually want a place to land and at that point, you will need deposits for everything under the sun. Better to have that available than to couch surf for some months past when it is no longer enjoyable for you and/or your friends.
Also, when I was working, it could take a cycle or two to get your TSP contributions changed. That may no longer be true since everything is now computerized, but don't assume this is something that happens instantly. It may take a few weeks to see the change - don't get caught up in that with no money.
Good luck!
I know you estimated your net income, but did you do that with help from the HR people? If not, realize that a dozen or so things will be coming out of your check before you ever see it (health insurance, retirement, federal tax, state tax, etc. etc. etc.) If your estimated net was done on your own without help from HR, you may be shocked at what you end up with.
It would be wiser to start off with at least a $1k per check buffer (money you think you won't need) and then adjust up after two paychecks. Remember that some things may not start the first check and that a double amount may come out later.
It is good that you are eager to get started on saving for retirement, but don't feel like you are "behind" or that any "catch up" is needed. If you can only save $10k for retirement this year, that $8k difference is a drop in the bucket in the long run. Better to have extra money (you can build your emergency fund) while starting out than to need money and not have it.
And realize that couch surfing has its limits. You will eventually want a place to land and at that point, you will need deposits for everything under the sun. Better to have that available than to couch surf for some months past when it is no longer enjoyable for you and/or your friends.
Also, when I was working, it could take a cycle or two to get your TSP contributions changed. That may no longer be true since everything is now computerized, but don't assume this is something that happens instantly. It may take a few weeks to see the change - don't get caught up in that with no money.
Good luck!
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Re: Latest TSP (Thrift) Contribution Date?
Like said above, you must be a GS-12! I have only been a GS-11 soon to be step 6, and with a family of four I could never contribute more than 5% each pay period. $18,000 in one year you must surely have a good financial situation! You know you can contribute a percentage of your pay each two weeks instead of a dollar amount. They will match what you give up to 5% , but will not match after 5%. This is why I contribute 5% as well as having other financial obligations.
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Re: Latest TSP (Thrift) Contribution Date?
You will need to have contributed in full by pay period 24 because pay periods 25 and 26 will be disbursed in January the following calendar year. I'm not sure what state you're in, but the net income you've calculated is based on a gross annual salary of about $80,000 (give or take a couple thousand), which is a bit high for an entry-level Fed, so be sure you got this calc right. My net income is roughly 62.5% of my gross income - yours will be different depending on your state and federal tax brackets and the fact that you are paying more into the pension system than I am.
It's great to be able to put away all $18k in the first 6 months of working, but if it's not possible to do and still live, don't be discouraged. Just be sure to contribute a minimum of 5% and then go from there. Even if the cash isn't saved in your tax sheltered account, you can still save it in a taxable, which will give you more flexibility.
Also, if you're military or an RPCV, be sure to buy back your service!
It's great to be able to put away all $18k in the first 6 months of working, but if it's not possible to do and still live, don't be discouraged. Just be sure to contribute a minimum of 5% and then go from there. Even if the cash isn't saved in your tax sheltered account, you can still save it in a taxable, which will give you more flexibility.
Also, if you're military or an RPCV, be sure to buy back your service!
She/her | Make sure the fortune that you seek is the fortune that you need - Ben Harper
Re: Latest TSP (Thrift) Contribution Date?
The government numbers pay periods by payday; pay period 2016-01 is the first pay period which is paid in 2016, although some or all of the pay period is done in 2015. Check with your own payroll office for the pay period numbers when you set up your TSP contribution. (In particular, depending on the pay schedule, some departments have 27 pay periods in 2015 and others have 26, so if you start work in pay period 14, you may have 13 or 14 periods left, and you don't want to max out in pay period 26 of 27 or you will lose the match.)evilityb wrote:You will need to have contributed in full by pay period 24 because pay periods 25 and 26 will be disbursed in January the following calendar year.
Re: Latest TSP (Thrift) Contribution Date?
I didn't realize this was different by agency, although that makes perfect sense. My PP25 and PP26 TSP contributions are included in January of this year, according to my statement (I just checked it to be sure).grabiner wrote:The government numbers pay periods by payday; pay period 2016-01 is the first pay period which is paid in 2016, although some or all of the pay period is done in 2015. Check with your own payroll office for the pay period numbers when you set up your TSP contribution. (In particular, depending on the pay schedule, some departments have 27 pay periods in 2015 and others have 26, so if you start work in pay period 14, you may have 13 or 14 periods left, and you don't want to max out in pay period 26 of 27 or you will lose the match.)
She/her | Make sure the fortune that you seek is the fortune that you need - Ben Harper
Re: Latest TSP (Thrift) Contribution Date?
This is REALLY good advice.retiredjg wrote:I also think your goal is lofty, and that is a good thing. But since you may have limited experience with working full time, you might be in for a shock about your paycheck.
I know you estimated your net income, but did you do that with help from the HR people? If not, realize that a dozen or so things will be coming out of your check before you ever see it (health insurance, retirement, federal tax, state tax, etc. etc. etc.) If your estimated net was done on your own without help from HR, you may be shocked at what you end up with.
It would be wiser to start off with at least a $1k per check buffer (money you think you won't need) and then adjust up after two paychecks. Remember that some things may not start the first check and that a double amount may come out later.
It is good that you are eager to get started on saving for retirement, but don't feel like you are "behind" or that any "catch up" is needed. If you can only save $10k for retirement this year, that $8k difference is a drop in the bucket in the long run. Better to have extra money (you can build your emergency fund) while starting out than to need money and not have it.
And realize that couch surfing has its limits. You will eventually want a place to land and at that point, you will need deposits for everything under the sun. Better to have that available than to couch surf for some months past when it is no longer enjoyable for you and/or your friends.
Also, when I was working, it could take a cycle or two to get your TSP contributions changed. That may no longer be true since everything is now computerized, but don't assume this is something that happens instantly. It may take a few weeks to see the change - don't get caught up in that with no money.
Good luck!
chocolate123, do you already have an emergency fund?
- chocolate123
- Posts: 23
- Joined: Tue Jun 18, 2013 6:21 pm
Re: Latest TSP (Thrift) Contribution Date?
Well, this is bad news. I came up with $4000-$4200ish of takehome income using a few online calculators, but it appears they may not have been correct. I'm set to be earning approximately $70,000, which it now appears will yield much less takehome income than I anticipated.retiredjg wrote:I also think your goal is lofty, and that is a good thing. But since you may have limited experience with working full time, you might be in for a shock about your paycheck.
I know you estimated your net income, but did you do that with help from the HR people? If not, realize that a dozen or so things will be coming out of your check before you ever see it (health insurance, retirement, federal tax, state tax, etc. etc. etc.) If your estimated net was done on your own without help from HR, you may be shocked at what you end up with.
It would be wiser to start off with at least a $1k per check buffer (money you think you won't need) and then adjust up after two paychecks. Remember that some things may not start the first check and that a double amount may come out later.
It is good that you are eager to get started on saving for retirement, but don't feel like you are "behind" or that any "catch up" is needed. If you can only save $10k for retirement this year, that $8k difference is a drop in the bucket in the long run. Better to have extra money (you can build your emergency fund) while starting out than to need money and not have it.
And realize that couch surfing has its limits. You will eventually want a place to land and at that point, you will need deposits for everything under the sun. Better to have that available than to couch surf for some months past when it is no longer enjoyable for you and/or your friends.
Also, when I was working, it could take a cycle or two to get your TSP contributions changed. That may no longer be true since everything is now computerized, but don't assume this is something that happens instantly. It may take a few weeks to see the change - don't get caught up in that with no money.
Good luck!
- chocolate123
- Posts: 23
- Joined: Tue Jun 18, 2013 6:21 pm
Re: Latest TSP (Thrift) Contribution Date?
No, I currently do not have an emergency fund outside a few thousand of VTI in a taxable brokerage that I suppose I can tap if the situation warrants ("emergency").sawhorse wrote:This is REALLY good advice.retiredjg wrote:I also think your goal is lofty, and that is a good thing. But since you may have limited experience with working full time, you might be in for a shock about your paycheck.
I know you estimated your net income, but did you do that with help from the HR people? If not, realize that a dozen or so things will be coming out of your check before you ever see it (health insurance, retirement, federal tax, state tax, etc. etc. etc.) If your estimated net was done on your own without help from HR, you may be shocked at what you end up with.
It would be wiser to start off with at least a $1k per check buffer (money you think you won't need) and then adjust up after two paychecks. Remember that some things may not start the first check and that a double amount may come out later.
It is good that you are eager to get started on saving for retirement, but don't feel like you are "behind" or that any "catch up" is needed. If you can only save $10k for retirement this year, that $8k difference is a drop in the bucket in the long run. Better to have extra money (you can build your emergency fund) while starting out than to need money and not have it.
And realize that couch surfing has its limits. You will eventually want a place to land and at that point, you will need deposits for everything under the sun. Better to have that available than to couch surf for some months past when it is no longer enjoyable for you and/or your friends.
Also, when I was working, it could take a cycle or two to get your TSP contributions changed. That may no longer be true since everything is now computerized, but don't assume this is something that happens instantly. It may take a few weeks to see the change - don't get caught up in that with no money.
Good luck!
chocolate123, do you already have an emergency fund?
Re: Latest TSP (Thrift) Contribution Date?
chocolate123, most people on this board are much older than you or I, and they advocate a long term approach. Sometimes you have to think short term though. This is one of those times. Do not put anything into the TSP until you have an emergency fund. Especially not when you are couch surfing.chocolate123 wrote:No, I currently do not have an emergency fund outside a few thousand of VTI in a taxable brokerage that I suppose I can tap if the situation warrants ("emergency").
If you want your current VTI money to serve as your emergency fund, that's fine. Sell all your shares and put that in a bank account to access at any time. Although you would ideally have a Roth IRA account separate from your emergency account, a Roth IRA can serve as an emergency fund. If you intend for your Roth to serve as your primary emergency fund, I recommend using myRA because you can never lose principal.
Personally I would sell the VTI and use that as your primary emergency fund. Since you are only working part of this calendar year, your capital gains taxes will be minimal, unlike future years. If the amount in VTI is less than 3-6 months of expenses, then use myRA as your Roth up to whatever amount is needed to bring you to 3-6 months. You can always transfer it out when you have a better cushion.
Re: Latest TSP (Thrift) Contribution Date?
Bad news? You are just starting your career and $70k in a stable and pensioned job with good health care is bad news? Do you have any idea how fortunate you are?chocolate123 wrote:Well, this is bad news. I came up with $4000-$4200ish of takehome income using a few online calculators, but it appears they may not have been correct. I'm set to be earning approximately $70,000, which it now appears will yield much less takehome income than I anticipated.
Life is not an emergency. You don't have to have your retirement nest egg growing like wildfire just now. Sit back, relax, and let the system work for you. This river does not need to be pushed because it flows quite nicely by itself.
For the first few months, just put 5% in the TSP. This will get you the entire match. Build up an emergency fund - this is what keeps you out of the death spiral of debt. Build up a fund to get set up in your own place - all those deposits and little odds and ends you have to buy. Try to put $5,500 into Roth IRA, but don't worry if it is less than that.
Once you've got an emergency fund and know what your real discretionary money will be, increase the TSP to the point that you have all you need to live and nothing left over to just waste. Try to stay in that zone. When you get a raise or step increase, put half of it into the TSP (increase your contribution so that the TSP gets half of the salary increase). In no time, you'll be saving the max.
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Re: Latest TSP (Thrift) Contribution Date?
retiredjg wrote:Bad news? You are just starting your career and $70k in a stable and pensioned job with good health care is bad news? Do you have any idea how fortunate you are?chocolate123 wrote:Well, this is bad news. I came up with $4000-$4200ish of takehome income using a few online calculators, but it appears they may not have been correct. I'm set to be earning approximately $70,000, which it now appears will yield much less takehome income than I anticipated.
Life is not an emergency. You don't have to have your retirement nest egg growing like wildfire just now. Sit back, relax, and let the system work for you. This river does not need to be pushed because it flows quite nicely by itself.
For the first few months, just put 5% in the TSP. This will get you the entire match. Build up an emergency fund - this is what keeps you out of the death spiral of debt. Build up a fund to get set up in your own place - all those deposits and little odds and ends you have to buy. Try to put $5,500 into Roth IRA, but don't worry if it is less than that.
Once you've got an emergency fund and know what your real discretionary money will be, increase the TSP to the point that you have all you need to live and nothing left over to just waste. Try to stay in that zone. When you get a raise or step increase, put half of it into the TSP (increase your contribution so that the TSP gets half of the salary increase). In no time, you'll be saving the max.
Yes. This. Especially, "For the first few months, just put 5% in the TSP. This will get you the entire match. Build up an emergency fund - this is what keeps you out of the death spiral of debt."
I'm reiterating this because it was said in a previous post that you should not contribute anything until you have an emergency fund. If you do not contribute to the TSP, you will be losing the match. Don't give up any money they want to give you! So, be sure to contribute at least 5% to get the full match. It took me several months (okay, a few years) to build up an adequate emergency fund -- foregoing the match for several months/years would have cost me a lot more in the long run. If shit goes wrong, you've got a credit card until you can build up the e-fund in full.
She/her | Make sure the fortune that you seek is the fortune that you need - Ben Harper
Re: Latest TSP (Thrift) Contribution Date?
I'm the one who said not to contribute to the TSP until the emergency fund is built. I overlooked the post saying that there is a 5% match. Yes, definitely contribute up to the match!evilityb wrote:I'm reiterating this because it was said in a previous post that you should not contribute anything until you have an emergency fund. If you do not contribute to the TSP, you will be losing the match. Don't give up any money they want to give you! So, be sure to contribute at least 5% to get the full match. It took me several months (okay, a few years) to build up an adequate emergency fund -- foregoing the match for several months/years would have cost me a lot more in the long run. If shit goes wrong, you've got a credit card until you can build up the e-fund in full.
Re: Latest TSP (Thrift) Contribution Date?
And, don't forget that until you can build an emergency fund in taxable - Roth contributions can serve dual purpose until you can afford it. Just make every effort to never ever touch them - only real emergencies.sawhorse wrote:I'm the one who said not to contribute to the TSP until the emergency fund is built. I overlooked the post saying that there is a 5% match. Yes, definitely contribute up to the match!evilityb wrote:I'm reiterating this because it was said in a previous post that you should not contribute anything until you have an emergency fund. If you do not contribute to the TSP, you will be losing the match. Don't give up any money they want to give you! So, be sure to contribute at least 5% to get the full match. It took me several months (okay, a few years) to build up an adequate emergency fund -- foregoing the match for several months/years would have cost me a lot more in the long run. If shit goes wrong, you've got a credit card until you can build up the e-fund in full.
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Re: Latest TSP (Thrift) Contribution Date?
I believe this only applies to Roth IRAs, Roth employer plans including the Roth TSP.leonard wrote:And, don't forget that until you can build an emergency fund in taxable - Roth contributions can serve dual purpose until you can afford it. Just make every effort to never ever touch them - only real emergencies.
Re: Latest TSP (Thrift) Contribution Date?
Welcome aboard OP. There's a lot of great advice above. Continue living like a student and you'll be able to save and invest a lot of money, but get settled first, get that emergency fund, contribute at least 5% to your ROTH TSP this year (and probably your traditional TSP next year), and then save as much as you're comfortable with. Don't buy that brand new car because you can "afford" the payments. Depending on your age, it's also likely a lot more affordable to buy term insurance instead of the FEGLI that Uncle Same offers you. I didn't find that out until a couple years after I began working. Good luck.
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Re: Latest TSP (Thrift) Contribution Date?
Your pay and TSP contributions count in the calendar year received, not the year of hours worked. Changes to my TSP take at least one pay period to take effect. Recommend you check the rules for what happens to the TSP contribution if there isn't enough left in your paycheck to make the full contribution.
Lar
Lar
- chocolate123
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Re: Latest TSP (Thrift) Contribution Date?
Just as an update, in only six months of employment in 2015, I was indeed able to max the 18,000 TSP using a combination of 5% per pay period going to the pre-tax TSP (in order to get the employer match) and the rest toward the TSP Roth (since I like the idea of tax free growth)
Re: Latest TSP (Thrift) Contribution Date?
Couch-surfing pays off. You should take everyone to dinner.
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Re: Latest TSP (Thrift) Contribution Date?
You don't need to do this; you will get the full match in the Traditional TSP if you contribute 5% of your salary to either one. Thus, if appropriate, you can go all-Roth.chocolate123 wrote:Just as an update, in only six months of employment in 2015, I was indeed able to max the 18,000 TSP using a combination of 5% per pay period going to the pre-tax TSP (in order to get the employer match) and the rest toward the TSP Roth (since I like the idea of tax free growth)
- chocolate123
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Re: Latest TSP (Thrift) Contribution Date?
Thanks everyone!
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Re: Latest TSP (Thrift) Contribution Date?
It is the payment date for the pay period that matters. This is when the employee salary deferral deduction actually occurs. This will be documented on your W-2 box 12 code D. The contribution itself into the account may or may not be later than this and is not relevant.evilityb wrote:I didn't realize this was different by agency, although that makes perfect sense. My PP25 and PP26 TSP contributions are included in January of this year, according to my statement (I just checked it to be sure).grabiner wrote:The government numbers pay periods by payday; pay period 2016-01 is the first pay period which is paid in 2016, although some or all of the pay period is done in 2015. Check with your own payroll office for the pay period numbers when you set up your TSP contribution. (In particular, depending on the pay schedule, some departments have 27 pay periods in 2015 and others have 26, so if you start work in pay period 14, you may have 13 or 14 periods left, and you don't want to max out in pay period 26 of 27 or you will lose the match.)